TELUS revokes offer for Mobilicity acquisition
11 June 2013 |
Canadian operator TELUS has officially abandoned its offer to acquire Mobilicity.
After a long-running acquisition process, the operator has taken the decicision following a statement from Canadian Industry Minister Christian Paradis last Tuesday, which objected to the deal.
The Canadian government said it would block the transfer of Mobilicity’s licences to TELUS, but it was reportedly unclear as to whether this voided TELUS’ existing agreement with Mobilicity.
“The Minister announced that he was not going to approve the application to transfer Mobilicity’s spectrum licences to TELUS,” Industry Canada said in a statement to local reporters.
“He also indicated that going forward, proposed spectrum transfers that result in undue spectrum concentration – and therefore diminish competition – will not be permitted.”
TELUS agreed to purchase Canadian wireless operator Mobilicity for C380 million in May this year, but confirmed to reporters yesterday that it had terminated the sale agreement.
Mobilicity now plans to pursue its previous recapitalisation plan, and bond holders are expected to vote on this in a meeting set for June 25 2013.
“The company will continue to provide updates as warranted,” Mobilicity said in a statement.
“Mobilicity continues to deliver an affordable wireless experience to its customers.”